Government has asked Sunil Mittal's Bharti group to seek a separate FIPB approval within three months for its upcoming Direct-To-Home services.
"The DTH licensee Bharti Telemedia is ordered to seek separate FIPB approval within three months from the date of issue of this order," a directive issued by Information and Broadcasting Ministry on August 25 said.
When contacted, a Bharti spokesperson said: "The requirement of a separate FIPB approval is a procedural matter and we will submit all necessary details as required".
"We have all required approvals in place and are in complete compliance of all regulatory guidelines, including FDI and the foreign equity as applicable," he added.
The I&B order follows replies by the company to its earlier show-cause notice over alleged 'violation' of FDI and other guidelines.
As per existing guidelines, any foreign investment in cable and boadcasting company requires FIPB approval.
The bone of contention was Bharti Airtel, the group's mobile telephony arm holding 40 per cent stake in Bharti Telemedia, as well as having a cable operator's licence, owning over the permitted stake in the DTH arm.
"Bharti Airtel, which has a 40 per cent share in the DTH licensee company, is registered as a cable operator. The eligibility condition for DTH license provides that the licensee shall not allow broadcasting and/or cable network companies to collective hold or own more than 20 per cent of the total paid up equity in the DTH venture," the notice had said.
